USD/TRY firmer, approaches to the 8.40 mark

USD/TRY advances further and trades closer to 8.40.
A 7.1 magnitude quake hit Turkish Izmir province and parts of Greece.
The lira depreciates to another all-time low vs. the dollar on Friday.

Pablo Piovano FXStreet

Another day, another plunge in the Turkish currency. Indeed, another daily collapse of the lira sends USD/TRY to new all-time highs in the boundaries of the 8.40 yardstick.

USD/TRY looks to CBRT, geopolitics

USD/TRY extends the march further north and already trades at shouting distance from the 8.40 level at the end of the week, navigating the seventh consecutive day with gains at the same time.

It is worth recalling that the pair advances nearly 9% this month so far, the best monthly performance since August 2018, when it appreciated more than 33% amidst a deep currency crisis.

Geopolitical concerns - including the conflict in Greece and the Caucasus as well as rising bets for EU and US sanctions – add to the sharp sell-off already in place in response to shrinking credibility in the central bank (CBRT) and its ability to tackle the currency’s weakness and the persistent drain of FX reserves.

Latest news in Turkey says a 7.1 magnitude earthquake hit the Izmir province and it was also felt as far as in Athens.

USD/TRY key levels

At the moment the pair is gaining 0.90% at 8.3482 and faces the next hurdle at 8.3822 (all-time high Oct.30). On the downside, a drop below 7.7787 (low Oct.22) would expose 7.6294 (monthly low Oct.1) and finally 7.5082 (low Sep.25).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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